The chapter opens with Margaret Bayard Smith's account of the early days of Washington in order to show how isolated and insignificant the new capital was in Jefferson's time, and how far it remained from the grandiose dreams the Federalists had held for the city. A supporter of the new president, Smith witnessed Jefferson's inauguration, which she recognized as a milestone in the Republic's history, for it marked the first peaceful transfer of power to another political party.

Jefferson in Power
The first section examines Jefferson's political philosophy. A complex individual, Jefferson combined a fondness for making seemingly radical pronouncements with a large dose of political realism. Jefferson had a strong faith in the people and a belief in limited government. Convinced that agriculture nurtured the values necessary to preserve republicanism, he wanted to keep commerce and urbanization distinctly subordinate in the American economy.

Jefferson found, however, that he confronted different problems in power than in opposition. His agrarian principles led him to push actively for the United States' geographic expansion, but on economic questions he increasingly compromised. In particular, he failed to dismantle Hamilton's economic program, opposition to which had largely caused the original formation of the Republican Party. Jefferson's radical rhetoric contrasted sharply with his more pragmatic actions.

In another crucial development, the Supreme Court established the principle of judicial review -- the right of the Court to interpret the Constitution -- primarily as a result of the influence of Chief Justice John Marshall, a staunch Federalist appointed by John Adams at the end of his term. Based on this theory, the Court asserted its right to rule on the constitutionality of any laws passed by Congress and state legislatures, as well as its right to review decisions on constitutional matters by state courts. Marshall first laid out the principle of judicial review in the case of Marbury v. Madison (1803). Eager to bring all branches of government under their party's control, Republicans attempted to impeach several notoriously partisan Federalist judges, but Congress balked at this action, thereby preserving the independence of the judiciary.

Jefferson and Western Expansion
Jefferson viewed western expansion as a blessing. He believed that it would preserve his republic of liberty by keeping agriculture and the values of the semi-subsistence economy dominant. When France suddenly offered to sell the entire Louisiana region to the United States, Jefferson leapt at the chance to double the size of the country, even though he believed that the federal government lacked the power under the Constitution to acquire territory. Once again, as with his economic policies, practical politics prevailed over ideological purity. Jefferson dispatched an expedition under the leadership of Meriwether Lewis and William Clark to explore the new territory, find a route to the Pacific, and strengthen American claims to Oregon.

Whites and Indians on the Frontier
As whites poured across the Appalachian Mountains into the Ohio Valley, a series of revivals broke out on the frontier. These revivals marked the beginning of the Second Great Awakening and were characterized by strong displays of emotion. The camp meetings offered social outlets for isolated pioneer families and offered an emotional release from the hard life on the frontier, while the revivalists preached a message of hope and the ability of individuals to gain salvation.

As white settlement increased, tensions between whites and Indians steadily grew across the Ohio Valley. White encroachment on Indian lands and disputes over Indian trade with whites led to cultural disorder among the northwestern tribes. In this situation, some Indian leaders, such as Black Hoof, urged adoption of white culture. Most of the tribes in the region, however, rallied behind a religious movement promoted by the Shawnee leader Tenskwatawa, who was known as the Prophet, much as frontier families turned to the revivalism of camp meetings. The Prophet sought to revitalize Indian cultures by limiting contact with whites, rejecting white goods, and preserving tribal lands. His movement, however, proved unable to prevent further land cessions. As the Prophet's prestige declined, his brother Tecumseh assumed leadership of the western tribes. Tecumseh advocated combining the western and southern tribes into a political and military alliance to protect their lands and way of life.

The Second War for American Independence
Increasingly, foreign affairs dominated American politics. Efforts to define an American cultural identity led to conflicts with both the Barbary states of North Africa and with Britain and France. When the latter two nations resumed their war in 1805, neither power was willing to respect the United States' rights as a neutral nation, and began to raid American shipping on the high seas and impress American sailors. American grievances were stronger against Britain, which had the more powerful navy. Reluctant to resort to force, Jefferson tried to use peaceful coercion by imposing an embargo on American trade with both countries. Some areas, especially New England, openly flouted the law, and eventually the Republican Party had to abandon this policy.

James Madison, Jefferson's successor, came under mounting pressure from younger nationalistic Republicans, known as the War Hawks. The War Hawks grew increasingly indignant over British interference with American shipping and meddling with western Indians. When renewed efforts at peaceful coercion and negotiation failed, the U.S. finally declared war on Britain in order to preserve American rights and uphold national independence.

Americans proved woefully ill-prepared for war, however. Efforts to invade Canada failed dismally, the British occupied Washington and burned a number of government buildings, and only Andrew Jackson's victory at New Orleans redeemed American pride. Meanwhile, Tecumseh allied his followers with the British, seeing such an alliance as the western tribes' best chance to safeguard their lands. His death in battle ended his pan-Indian movement. Federalist leadership incited New England states to refuse to support the war, and the region's opposition culminated in the Hartford Convention of 1814, which rejected calls for disunion but proposed several constitutional amendments to reduce the South's political influence.

Despite the country's many military failures, the war produced several long-term consequences. It broke the power of Tecumseh's movement, opening the way for white settlement of the Northwest. It destroyed the Federalist Party, which suffered irreparable damage due to its opposition to the war. Finally, it led to a groundswell of American nationalism.

America Turns Inward
This postwar nationalism emerged in the foreign policy of President James Monroe. The Transcontinental Treaty established the principle of American expansion to the Pacific, while the Monroe Doctrine proclaimed the New World's independence from Europe. American relations with Britain improved dramatically after 1815, as the two nations reached agreement on a number of long-standing differences. Britain's recognition of American sovereignty ended the threat of foreign interference in American affairs, bringing to a close the quest for independence from British control and interference that had begun with the Revolution. However, the Missouri crisis of 1819-1821, which brought the issue of slavery to the forefront of national politics for the first time, offered an example of the formidable challenges that remained for the American republic and its leaders.